ALABAMA

NMLS Transition Deadline:  December 31, 2009

Alabama has rescinded their FHA exemption for lenders.  Section 5-19-31 of the Alabama Consumer Credit Act was amended to remove the exemption as to licensing for “an approved mortgagee under the provisions of the National Housing Act”.  As to a result, the amendment removes what has been commonly referred to as the “HUD Exemption” under Alabama law.  This will require mortgage companies that operated under this exemption to obtain a license by November 21, 2009.

Brokers – Will need to be licensed under the Mortgage Broker license and the Brick and Mortar requirement has been rescinded, however, the licensed location must be commercial and cannot be a residence. 

Lenders – Will need to be licensed under the Consumer Credit License – this license is for lenders, however, brokering is also allowed. 

Alabama will begin accepting submissions through NMLS on 10/01/2009.  However, current company licensees can obtain access and complete all necessary MU Forms prior to that date. The deadline for current licensees to transition their license onto NMLS is 12/31/2009.

MLO, Owners, Managers, & Officers – Education Requirements must be met prior to 12/31/2009.  *Reciprocity for education applies; contact your Education provider for details. 

MLO’s in Alabama have until June 1, 2010 to complete and submit a Form MU4 through the NMLS.

The NMLS Unique Identifier of individual originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards, websites, and any other documents as established by rule.

ALASKA

NMLS Transition Deadline:  October 31, 2009

ARIZONA

MLO’s and Responsible Individuals must complete the AZ Continuing Education requirements prior to December 31^st of each calendar year.

DISTRICT OF COLUMBIA

NMLS Transition Deadline:  October 31, 2009

KENTUCKY

Any individual who applies for registration after November 1, 2009 must meet and follow all SAFE Act Requirements. 

MLO License Renewal must be completed by November 30, 2009.  Credit Report submission via the NMLS is scheduled for November 30, 2010.    Continuing Education for all individuals is due by November 30, 2009.  *Reciprocity for education may apply; contact your Education provider for details.  NOTE:  Your Processors are required to be licensed as a MLO in the State of Kentucky.

The NMLS Unique Identifier of individual originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards, websites, and any other documents as established by rule.

MISSOURI

The FHA Exemption has been rescinded and is no longer available.  All mortgage lenders and brokers must be licensed to conduct business in Missouri.  This state is a brick and mortar state and the license application is the “broker license.”

NEVADA

Effective October 1, 2009 Nevada is now requiring a bond in the amount of $50,000.00 for all licensed mortgage brokers (AB486).  Mortgage bankers are not required to carry a bond at this time, but it is coming.

 There is a new license application for Loan Modification Consultants, Foreclosure Consultants and Covered Service Providers.  These applicants  must apply with a bond in the amount of $75,000, if the applicant/licensee’s trust account exceeds $50,000.00 over a six month period, a $100,000 bond is required (AB150).

NORTH DAKOTA

MLO’s (W-2); MLO’s Loan Processors, and U/W acting as Independent Contractors must be fully licensed prior to September 30, 2009.

The NMLS Unique Identifier of individual originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards, websites, and any other documents as established by rule.

OKLAHOMA

The FHA Exemption has been rescinded and is no longer available.  All mortgage lenders and brokers must be licensed to conduct business in Oklahoma.  The license application is the “broker license.”  This license has rescinded their brick and mortar requirement; therefore, no physical location is required for the broker license.

PENNSYLVANIA

Pennsylvania rescinded their brick and mortar requirement August 2009.  [WAITING FOR PA TO CALL BACK TO PROVIDE THE REG/RULE/ACT THAT RESCINDS THE B&M]     Additionally, they are requiring a bond regardless of whether or not you are an FHA MortgageeA.

Lenders

SURETY BOND. Provide an original Surety bond in the appropriate amount (see below) furnished by a surety company authorized to conduct business in Commonwealth of Pennsylvania. The name of the principal insured on the bond must match exactly the Full Legal Business Name of applicant.

Amount Anticipated or Actual Amount of PA Mortgage Loan Originations

$100,000 $29,999,999.99 or less

$200,000 $30,000,000 – $99,999,999.99

$300,000 $100,000,000 – $249,999,999.99

$500,000 $250,000,000 or more

MLO’s will be responsible for maintaining an individual surety bond ONLY if their employer is a business that is not required to be licensed by virtue of the MLA and elects not to maintain the required surety bond on behalf of its licensed MLO. Should the MLO require individual bonding, the determination of the amount of the surety bond required will be the amount of mortgage loan originations secured by Pennsylvania real property in a calendar year. For initial mortgage originator applicants, the amount of the bond will be determined by the anticipated amount of mortgage loans secured by Pennsylvania real property originated in the first calendar year of licensing.

The NMLS Unique Identifier of individual originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards, websites, and any other documents as established by rule.

SOUTH CAROLINA

Licensing Change – Currently Mortgage Lenders/Bankers are not required to be licensed to originate and fund 1^st mortgage loans in South Carolina.  Effective January 1, 2010 this exemption is gone.  A new licensing process through the NMLS will be required.  Because of the discontinuance of the exemption and the effective date of the new licensing being the same date, it is virtually impossible to be licensed on January 1, 2010, therefore, the State is allowing a 90 day window 1/1/2010 through 3/30/2010 for all new applicants to perform lending activities until their license is issued as long as there has been an application submitted and is pending approval. 

LO’s will also need to be licensed, however, without the company license an LO normally cannot be licensed, therefore, the state will be issuing a provisional license to LO’s until the company is licensed.

Effective January 1, 2010, any licensee with a Supervised Lender License will no longer be allowed to make, service, or originate any type of mortgage loan.

TENNESSEE

Effective July 31, 2009 Tennessee has rescinded their FHA exemption registration.  Any licensee with an exemption will be allowed this exemption until July 31, 2010.  After that all licensees will need to be licensed through the Tennessee Department of Financial Institutions as a mortgage broker or banker

UTAH

MLO:  Commencing October 1, 2009 through April 30, 2010, an applicant for a new license may not take the Utah examination to satisfy the national portion of the examination. During this period, an applicant for a new license must take two separate tests:  (a) the Utah portion of the existing Commission-approved Utah examination; and (b) the national portion of the NMLS examination. 

Beginning May 1, 2010, an applicant for a new license must take both the Utah portion and the national portion of the examination through NMLS.

All MLO licensees must take and pass the NMLS national portion of the licensing examination by December 31, 2010.

All existing Utah-approved mortgage courses for pre-licensing education expire December 31, 2009. As of January 1, 2010, 60 hours of pre-licensing education is required, as follows: (a) 40 hours approved by the Utah Commission and Division according to the Utah outline for state course curriculum; and (b) 20 hours approved by NMLS according to the NMLS&R outline for national course curriculum.

WASHINGTON (CLL)

Bond Change – Effective January 1, 2010 the bond amount for the Washington Consumer License will be reduced.  It is currently in the rulemaking process, however, the bond requirements should be as follows:

WAC 208-620-320 What is the amount of the bond required for my consumer loan license? (1) Loans not secured by real estate.  For licensees making loans not secured by real property, the penal sum of the bond is one hundred thousand dollars for each office up to five locations. For each additional branch office over five, the amount of the bond must be increased by ten thousand dollars. (2) Loans secured by real estate. For a licensee making loans secured by real property, the penal sum of the bond is four hundred thousand dollars.)) The bond amount is based on the annual dollar amount of loans you originate. See the following chart:

1.            Zero to five million in loans originated:                 $30,000

2.            Five million to fifteen million:                                     $50,000

3.            Fifteen million to thirty million:                                  $100,000

4.            Thirty million and above:                                             $150,000

WAC 208-620-325 What will my bond amount be in the first year of licensing? Your initial bond amount will be based on either your prior year’s loan origination volume or thirty thousand

dollars, whichever is greater. See the bonding chart in WAC 208-620-320.

WAC 208-620-327 How often will my bond amount change? Your bond amount may change annually depending on your volume of loan origination.

IF AN INDIVIDUAL IS AN EMPLOYEE (W-2) OF A WASHINGTON STATE-LICENSED CONSUMER LOAN COMPANY, THE MLO LICENSE IS VOLUNTARY UNTIL JULY 1, 2010!

The MLO license is required for Individuals originating loans for licensed Mortgage Brokers, whether as an employee (W-2) or independent contractor (1099), Independent contractor loan originators representing exempt Mortgage Brokers and Consumer Loan companies, Independent contractor Loan Processors representing licensed or exempt Mortgage Brokers and Consumer Loan Companies.

2009 MLO Licensing Requirements: (July 31, 2009-December 31, 2009) Pass NMLS Tests (both State specific and National component) prior to obtaining a license, Complete 20 hours of Pre-Licensing Education in order to renew in 2010.  The education must be completed prior to December 31, 2009. (Pre-Licensing Education is deferred until renewal.)

2010 MLO Licensing Requirements: (January 1, 2010-June 30, 2010) Pass NMLS Tests (both State specific and National component) prior to obtaining a license, Complete 20 hours of Pre-Licensing Education.

The NMLS Unique Identifier of individual originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards, websites, and any other documents as established by rule.